The United States is facing a unique challenge when it comes to the job market outlook for young adults. While job market optimism has dipped across the Organisation for Economic Co-operation and Development (OECD) since 2023, the U.S. stands out for its stark generational divide. Young Americans, aged 15 to 34, are significantly less optimistic about local job conditions compared to their older counterparts, aged 55 and above. This contrast is particularly striking, as it reverses a long-standing trend where younger adults were more optimistic than older adults.
In 2025, 43% of Americans aged 15 to 34 felt it was a good time to find a job locally, a 21-percentage-point drop from the 55+ age group. This gap of 10 points is the largest among all countries surveyed, with only five others showing a similar pattern. Globally, the median optimism for young adults is 48%, while for older adults, it's 38%.
What makes this situation even more intriguing is the relative optimism of older Americans, many of whom are no longer in the workforce. This contrast between the two age groups is a recent development, with younger Americans' optimism plummeting by 27 points since 2023, mirroring the decline during the global financial crash. In contrast, the 35-54 age group has seen a 15-point decline, and the 55+ group has experienced a 6-point drop.
The U.S. youth's pessimism is particularly concentrated among highly educated young Americans who are not yet working full-time. This group is most actively trying to enter the labor market, and their anxiety about automation and artificial intelligence may contribute to their negative outlook. However, the data does not directly measure this anxiety.
Despite the U.S. youth's declining optimism, other advanced economies have not witnessed the same pattern. Job market optimism has dipped across the OECD, but young adults in these countries remain more positive than their older counterparts. The U.S. youth's job market confidence has continued to decline since 2022, while the OECD youth's optimism has remained solid.
The U.S. stands out not only for its generational divide but also for its rapid AI adoption across the workforce. This rapid change may be contributing to the steepest pessimism among highly educated young Americans who are not yet working full-time. As the U.S. workforce adapts to AI, the challenge of creating opportunities for young adults becomes even more pressing.
In conclusion, the U.S. job market outlook for young adults is a complex issue. While the generational divide is a significant concern, the rapid adoption of AI across the workforce may be exacerbating the challenge. As the U.S. continues to navigate this changing landscape, policymakers and businesses must work together to create opportunities for young adults and ensure a sustainable and inclusive job market.
